The Markets and Reliability Committee last week endorsed two manual changes and approved changes to rules on black start compensation and auction-specific transactions.

Manual Changes

Members endorsed changes to Manual 37: Reliability Coordination to update the System Operating Limits (SOL) definition and violation language (sections 3.1, 3.2) to conform to the North American Electric Reliability Corp. standard.

Revisions to the cost allocation section of Manual 14B: PJM Region Transmission Planning Process also won endorsement. The changes describe the current solution-based methodology as detailed in the PJM Tariff.

Revisions to Manual 14A: Generation and Transmission Interconnection Process were deferred to await coordination with MISO. The revisions are intended to reflect changes in how interim deliverability studies are conducted.

Black Start Compensation, ‘Back Stop’

Members approved a “back stop” mechanism for acquiring black start services through transmission providers when PJM solicitations fail to obtain service for a zone. Members also approved minor Tariff and manual changes relating to the compensation of black start units. (See PJM to Seek Smaller Black Start Changes.)

The new rules:

• Allow energy-only black start units to be compensated. There was previously no mechanism to compensate energy-only generators through the base formula rate.
• Allow automatic load rejection (ALR) units to recover NERC Compliance costs as documented to the Market Monitor.
• Allow fuel-storage compensation for liquefied natural gas, propane and oil. Previously, only oil storage was compensated.
• Limit black start units sharing a common fuel tank to claim the fuel-storage compensation for only one unit, closing a loophole.
• Schedule a review of compensation formulas every five years (down from the current two years) to align it with the RTO-wide black start solicitation.

The System Restoration Strategy Senior Task Force had considered several proposed changes but none of the others received the minimum 50% support to forward it to the MRC for consideration. With its work complete, the task force will be sunset, said MRC Chairman Mike Kormos, PJM’s executive vice president for operations.

Auction-Specific Transactions

Members gave final approval to a manual change that will make it easier for banks to purchase capacity providers’ revenue streams. The change, proposed by Citigroup Energy, will allow auction-specific transactions to be entered into PJM’s eRPM system after the auction that initiated them. Previously, such transactions could not be submitted to PJM until after the third incremental auction for a delivery year. (See Stakeholders Look to Expedite Auction-Specific Transactions.)